New social sector projects under CPEC: scarce resources, scant homework account for slowdown

16 Dec, 2018

Pakistan Tehreek-e-Insaf (PTI) government's incomplete homework for new social sector projects under China-Pakistan Economic Corridor (CPEC) as well as scarce resources account for the slowdown in the slow pace of work; there is no issue from Chinese side with regard to project implementation, reliable sources revealed to Business Recorder.
Sources associated with the CPEC projects said that the government has not yet finalized its work on agreements on various components of the ongoing projects.
Initially, the PTI government maintained that the previous PML-N government had signed expensive agreements with China, but "it took almost two months for the new government to accept the tariff agreed under CPEC," said an official on condition of anonymity, adding that the government is yet to clear the outstanding amount of $119 million of Chinese companies operating Sahiwal Coal Power Plant.
The PTI government was also in the process of prioritizing projects under CPEC and is going to present its own prioritized projects in the upcoming 8th meeting of Joint Coordination Committee (JCC) scheduled to be held on December 20 in Beijing.
Socioeconomic development projects in less developed areas, agriculture sector projects, industrial development and establishment of special economic zones (SEZs), are some of the priority projects of the PTI government, they said.
Two new joint working groups on agriculture and socio-economic development under CPEC have recently been set up to negotiate and approve new projects in these sectors.
The delay in development of the industrial zones, sources said, is due to the failure of the government to provide the required facilities such supply of electricity, gas, water and infrastructure development for the establishment of the industrial zones in the designated areas.
The Minister for Planning Development and Reforms Khusro Bakhtiar has also issued directions to relevant ministries and departments to expedite work on the feasibility studies as well as working papers to be presented for approval in the JCC meeting.
The sources further said that there is continued delay in construction of the western route, as the government is yet to finalize PC-I of Dera Ismail Khan-Zhob and Zhob-Quetta roads.
Talking to Business Recorder, Hassan Daud Butt, Project Director/CPEC Coordinator/Focal Person CPEC, rejected the impression that there was any delay in the work on the ongoing projects.
He further argued that there was no delay in release of funds for the ongoing projects, adding that the pace of work on CPEC projects will be further expedited after the JCC meeting.
To a question about the delay on the western route, he said that the project is on the agenda of the JCC and the two sides would exchange views on the construction of Dera Ismail Khan-Zhob road in the meeting.

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